Foreign Investment Review Board Approval for Ivanhoe Mines to Participate in Equity Issuance MELBOURNE, AUSTRALIA, Oct 05, 2011 (MARKETWIRE via COMTEX) -- Robert Friedland, Chairman, and Peter Reeve, Chief Executive Officer of Ivanhoe Australia Limited /quotes/zigman/1329109 CA:IVA -12.17% (asx:IVA), are pleased to announce that the Foreign Investment Review Board (FIRB) has approved the proposed acquisition of shares by Ivanhoe Mines Ltd. as part of Ivanhoe Australia's recently announced equity placement.
As previously announced, Ivanhoe Australia's major shareholder, Ivanhoe Mines Ltd. (through its wholly owned subsidiary, IAL Holding Singapore Pte. Ltd.) ("Ivanhoe Mines"), has committed to acquire A$92.6 million worth of shares under the placement, which will result in it providing a net A$62 million funding contribution (after extinguishment of the intercompany debt of approximately A$30.6 million). This investment by Ivanhoe Mines is part of the approximate A$150 million net equity capital raising announced on 16 September (the Placement), the Institutional Placement component of which was completed on 23 September raising approximately A$88 million.
Ivanhoe Mines remains strongly committed to its investment in Ivanhoe Australia, and considers the funding to be an important step in the continued growth of Ivanhoe Australia. The Placement of shares to Ivanhoe Mines is subject to approval by Ivanhoe Australia shareholders at the General Meeting to be held on Tuesday 8 November 2011.
Following completion of the funding, Ivanhoe Mines will hold approximately 59% of Ivanhoe Australia (having held approximately 62% before the Placement).
Ivanhoe Mines /quotes/zigman/19098 CA:IVN +6.44% /quotes/zigman/19084/quotes/nls/ivn IVN +2.27% /quotes/zigman/19084/quotes/nls/ivn IVN +2.27% is Ivanhoe Australia's largest shareholder.
IVA Price at posting:
$1.01 Sentiment: ST Buy Disclosure: Held
